Question 12 7.5 pts Below are financial statements of Willamette Valley Vineyards' Property and Equipment: Vineyards Property and Equipment.xlsx 1). Estimate the average useful life for Willamette's depreciable assets at the end of fiscal 2019 and 2018. Does the average useful life look reasonable? 2). What percent used up of the PPE at the end of 2019? What does this imply for future cash flows? 3). On January 1, 2020 the company determined that one building is permanently damaged. The building has a net book value of $950,000, but the fair market value is now only $400,000. How would this affect the company's balance sheet and income statement in 2020? Assume 25% marginal tax rate. 2019 2018 Construction in progress $449,409 $482,284 Land 8,063,716 5,089,472 Winery building and hospitality center 14,458,309 13,756,320 Equipment 10,122,593 9,055,987 Total 33,094,027 28,384,063 Less accumulated depreciation -12,897,082 -11,654,901 Property Plant Equipment, Net $20,196,945 $16,729,162 Annual Depreciation expense $1,254,455 $1,194,191